Balancing internal and external considerations is widely recognised as integral to the creation and maintenance of a successful modern business. And given the sheer variety of broader economic and market challenges facing insurance businesses, the need to balance both sides of the equation is more pressing than ever.
For Adam Powell (pictured), co-founder and COO of Policy Expert, it is walking this tightrope that has led to many of the UK-based digital insurer’s milestone moments over the last two years. Delving into the external market conditions of the UK insurtech space, he noted that from looking at the brands that Policy Expert rubs shoulders with at the upper end of the home insurance market, he sees a lot of long-established brands – but not a huge amount of difference from the market into which his team launched over a decade ago.
“Outside home insurance,” he said, “there have been a number of insurtechs establishing themselves with interesting product offerings for certain market niches, but we’re yet to see others break through to compete head-on with the incumbents in the mass market of UK home and motor personal lines.
“The entrance of international insurtechs to the UK market highlights its attractiveness, but it’s early days and remains to be seen how they will perform. We’d love to see more domestic start-ups emulate our journey and turn their ambitions into profitable, scalable businesses that can fly the flag for UK innovation.”
As to the core challenges facing insurtech at this time, Powell highlighted that with economic conditions in a state of flux, there is increased pressure on households and businesses both at home and abroad. In many ways, he said, the upshot is that the challenges facing insurtechs over the last decade will become even tougher to crack for those at an earlier stage of their journey. The path to profitability is getting steeper and the barriers to entry are potentially higher for businesses without a proven track record behind them.
“We know from experience that innovative ideas or great tech aren’t enough on their own,” he said. “It’s crucial that you align them with customer needs and offer something that genuinely improves policyholders’ lives – which, for many people, might mean minimising the time they have to spend thinking about insurance, to focus on more exciting things.
“Our use of technology enables us to provide exceptional service at a significantly lower cost than our competitors, which keeps prices low for customers. This has always been important and is becoming even more so in the cost-of-living crisis.”
It’s hugely satisfying to look back and see Policy Expert’s consistently strong performance over the last two years, Powell said, particularly considering that this is despite the disruption of a global pandemic and major reforms to general insurance pricing practices. The firm has cemented its pole position in the personal lines insurtech market, with over 1.2 million home and motor customers on its books, through a combination of growth, profitability and – crucially – a focus on customer experience.
“Looking ahead,” he said, “the capacity agreement we signed with Accredited Insurance (Europe) Limited this summer will help deliver further growth and unlock the potential of our tech platform. We recently achieved our best-ever month for sales by attracting new customers and renewals in record numbers.”
There are several areas of focus for Powell and his team going forward, and underpinning this is the ambition to combine tech, data and human intelligence to win customers’ loyalty. The growth Policy Expert has achieved has been driven by deep vertical integration, he said, supported by proprietary technology and advanced data analytics. This gives the firm a holistic customer view and the ability to control the end-to-end process from pricing to claims.
“There’s great potential in our core home and motor product lines to seize greater market share,” he said. “We’re committed to helping customers save money when they switch and winning their trust to maintain our market-leading performance for renewals. We’re pushing the boundaries of using artificial intelligence, machine learning and automation to improve our underwriting and claims performance.”
That outward-facing focus is well-matched by an ongoing commitment to the internal development of the Policy Expert team – and at the centre of this is an ever-evolving emphasis on attaining and nurturing top-tier talent. Powell noted that understanding that the firm’s success depends on its talented workforce is at the heart of the challenge it has set itself to go the extra mile for its people as well as its customers.
“Policy Expert is currently recognised as one of the best employers in Milton Keynes, based on reviews from past and present team members on Glassdoor,” he said. “[…] We’re committed to offering an environment which is fun as well as focused, where people can show their talents and push the boundaries for general insurance.”
Policy Expert is really at the early stage of its D&I journey, Powell said, but it has big ambitions to achieve more and to build on established D&I networks across its sites in Milton Keynes, Motherwell and London. Integral to that is working closely with both its employees and local communities, and he said he has been encouraged to see Policy Expert ranked fourth in the UK for diversity and inclusion in a recent study by the Glassdoor Economic Research team.
The ranking positions the firm not only as the number one insurance brand but also across the wider financial services space. This is a great source of motivation as the team progresses with its plans, he said, which include a new tech partnership with Code First Girls to support young women and non-binaries to become future tech leaders and strengthen the talent pipeline.
“We’re very conscious of the communities around us, beyond the ‘day job’ of delivering affordable home and car insurance which people can trust,” Powell said. “Policy Expert has a long-standing relationship with KidsOut, a fantastic charity that supports disadvantaged children across the UK. Through volunteering our time, skills and creative abilities, our employees can take simple steps to make a meaningful difference in the lives of others and have an enduring, positive impact.”
